When undertaking a transaction such as the merger or acquisition of a business, the buying or selling of products and services, complete peace of mind is highly coveted, especially when transacting cross-border. This is where an escrow agreement can help.
What are escrow services and how are they used?
Escrow introduces an independent party – the escrow agent – to the transaction that holds the asset(s) and distributes in accordance with the terms stipulated in the signed agreement.
Escrow agreements between parties undertaking a transaction helps mitigate financial risk and concern whereby money, securities, funds and other assets can be held independently.
An escrow account is frequently used for cross-border transactions where there is a concern over the governing law of the transaction. The escrow agreement can be used to re-position the governing law into a country with a reputation for higher standards of regulation and a robust legal and judicial framework.
Escrow agreements are commonplace among financial transactions taking place for:
- Real estate – high-value rental, development or repurchasing of property
- Mergers and acquisitions and substantial share purchase
- Procurement of high-value assets, such as aircraft's or vessels
- Valuable auctions items – online or physical
- Intellectual property purchase – such as design, software, employment
- Legal – judgments for disbursements, land claims
- Project management
The importance of using a trusted escrow service or escrow agent
Hawksford is a long-established professional administration firm, and is well positioned to provide escrow services for European and Asia-Pacific transactions due to:
- EXPERTISE: Hawksford has a robust and international corporate offering, based on many years of experience. Our corporate administration and structuring services are provided by a team of dedicated specialists who work with clients from a wide variety of companies and industries.
- TRUSTED REPUTATION: We have supported some escrow agreements for over 30-years. Hawksford has been a trusted name for global businesses for decades. We are trusted by many UHNW individuals, families and multi-nationals corporations to support their daily affairs.
- BUSINESS STABILITY: Our size, stability and reputation provides further assurances to transacting parties and their legal advisers that the assets are being safeguarded to the highest standards.
- OPERATIONAL CAPABILITY: The jurisdictions in which Hawksford operates from all have robust legal systems and high standards of regulation and supervision that offer yet further assurance.
- COST-EFFECTIVENESS: There is a cost benefit to using Hawksford, as we have already done all of the work in setting up escrow agreements and underlying requirements – so there is no cost borne by the client of paying an additional legal adviser and/or bank to hold the assets.
- MULTI-CURRENCY ACCOUNTS: Our multi-currency bank accounts are already setup which allows us to turn the service around quickly.
Hawksford as your escrow agent
Hawksford's Singapore Escrow Services
Our Singapore escrow service fee structure, template agreements and speed at which we can support the transaction often provides individuals and businesses involved in large cash-based transactions in the Asia-Pacific region with the ideal support. Please note that our cash escrow services from Singapore are available for USD/US$ or SGD/S$ transactions only at this time.
Hawksford is also able to support Singapore escrow agreements requiring the:
- Establishment and management of Special Purpose Vehicles for the purposes of becoming a party of the escrow agreement where multiple pay outs are required
- Establishment and administration of a trust for the same purpose
- Bookkeeping and provision of accounting relating to the pay outs through a company or trust
Hawksford's Jersey Escrow Services
Escrow services provided by our teams in Jersey are often bespoke and tailored to the individual needs of our corporate clients. Our best team approach ensures the most appropriate and suitable team provide a trusted escrow solution, whether the escrow fund consists of shares, cash, real estate or other non-traditional assets requiring protection for a period of time. By working closely together, the best range of skills and experience are utilised to meet the needs of the client.
View a client case study of how we used escrow agreements